Yes, that is correct. Discreet Log Contacts and BitVM both involve two people putting money in a bitcoin address and running a program off chain to determine who should get the money. The only meaningful difference in my opinion is what happens if there is a dispute.

In a DLC, if there is a dispute about the outcome, the victim can use some data published by an oracle (a trusted third party) that both parties agreed to use before they put their money in the bitcoin address. The oracle independently ran the same program the two parties agreed should determine who gets the money, and the result published by the oracle breaks the tie, resolving the dispute.

By contrast, when there is a dispute in bitvm, no oracle is used, instead a small part of the program is run directly on bitcoin's blockchain. The victim finds one part of the program which they claim the other party ran incorrectly. Bitcoin itself can check which party ran that part of the program correctly, thus identifying the victim and giving them the money.